The John David Group, owner of JD Sports has announced the acquisition of its rival Allsports for £18M.
The purchasing of Allsports out of administration yesterday (October 31, 2005), comes amid a flurry of activity in the sporting goods market. The acquisition is aimed at bolstering JD Sports’ market position, amid the slow down in UK consumer spending. Bury based JD Sports, has also taken on some of the existing liabilities from the administrators.
The deal consists of the property rights to 180 Allsports stores, the whole of the trading inventory and has the additional significant benefit of preserving about 1850 jobs. Dermot Power, the leading administrator from BDO Stoy Hayward, comments: “This is a brilliant result for a large range of stakeholders. No doubt JD Sports will rapidly absorb and benefit from the Allsports estate.” He also goes on to say: “Whilst we were content to trade this business through the seasonally lucrative Christmas period, the opportunity to dispose at a premium pre Christmas was just too attractive to turn down.”